Section 10(7) in Tamil Nadu Local Fund Audit Rules, 2016
(7)The Director or the officer delegated by the Director shall verify the correctness of the annual accounts during annual audit and certify the annual accounts as prescribed below and append the certified copy of the accounts with the audit report : -(a)Unqualified Certificate. - If the auditor is satisfied in all material respects of the annual accounts, and found that accounts have been compiled properly with reference to subsidiary registers, book of accounts, the financial statements, and Schedules and that the accounts have been prepared according to the Act and rules, unqualified certificate shall be given;(b)Qualified Certificate. - If during verification in local audit, it was found out that there are serious mistakes in the annual accounts such as uncertainly with the amounts, non-tallying with subsidiary registers, books of accounts and other relevant records, the auditor shall issue a qualified certificate pointing out the defects noticed;(c)Disclaimer Certificate. - If in the opinion of the auditor, there is no possibility of the audit to give a clear opinion about the annual accounts, for want of any details, or due to non-closure or non-tallying of subsidiary records, demand, collection, balance statement, disclaimer certificate shall be given by the auditor: Provided that the reasons leading to the disclaimer are mentioned in writing with the details of discrepancies found out in respect of each transaction;(d)Adverse Certificate. - If the auditor cannot agree with the fundamental aspects of the annual accounts and if the accounts are found to be not acceptable due to the reasons that the account books, subsidiary registers and other relevant records have not been written up, demand, collection, balance statement not prepared for revenue items, reconciliation not struck and the figures in the annual account did not match with that of the Financial Statements presented to audit, an adverse certificate shall be given:Provided that the specific reasons thereon shall be recorded in writing and appended to the audit report.
